For being considered as habitual residence a property must fulfil the following
requirements:
Being habituated effectively and permanently by the debtor
in a deadline 12 months from the date of acquisition, the
end of construction or the rehabilitation of the property
on.
Once occupied by the debtor, it has to be with permanent
character during a continued time of three years, except
for causes sufficiently justified (marriage, divorce, labour
transfer, first employment, etc.).
Tax Basis:
The presumed levy for habitual residence does not exist (% of the cadastral
value)
Expenses cannot be deduced: IBI (Real Estate Tax) and interests of the loan.
Deductions of the quota:
Deduction of 15% of the inverted amounts; the maxima base of this deduction
is of 9,015.181 Euros annual per declaration.
In case of financing by means of loan through a financial organization, the
percentage of 15% can be elevated to 25% up to 4,507.590 Euros in the first
two years and to 20% from the third year on (for the excess up to 9,015.181
Euros continues being 15%), as long as it fulfils the following requirements:
The amount of the financing must be greater or equal
to 50% of the investment. In case of reinvestment, this
percentage is applied to the excess of investment.
During the three first years it is not possible to amortize more of 40%.
The interests are deduced of the quota, along with the amortized capital and
other expenses.
The contributors who have acquired their habitual residence before the 5 th
of May of 1998 and who consider themselves harmed by the reform of the I.R.P.F.
will be able to request the corresponding compensation (in the conditions and
procedure that fixes the Law of Budgets).
The deduction by Account Save-House is applied solely for first acquisition
of habitual residence (continues being of 15%, the base of the deduction happens
to be of 9,015.181 Euros and the term is reduced to 4 years for the opened ones
from 1 st of January of 1999 on).
Take into account that are not deductibles the amounts already deduced by acquisition
of previous habitual residence nor the corresponding ones to free capital gains
by reinvestment.
IRPF habitual residence
Tax basis: Net yield capital
in real property: Income: There are no deductible expenses
Deductions of the Capital quota
amortized and Interests: 15% (25 or 20 in certain
loans) of the inverted amounts (include amortized capital,
interest and other expenses) in the acquisition of the
house with limit of 9,015.181 Euros per declaration
Deduction in the case of financing
through Financial Organization
The following applicable
percentage is deduced on the quotas of the loan (amortization
+ I interest) until a limit of 9,015.181 Euros per declaration
